4/25/2012 What is it??? Negotiation- it is the process of making joint decisions when the parties involved have different preferences By: Eric, Jon, Cheyenne, Angel, and Alex Goals Substance goals- a focus on the outcomes(what is being negotiated) Relationship goals- a focus on people’s relationships and interpersonal process Effective Negotiation- resolves issues of substance while maintaining good relations Negotiation Option 1 Distributive negotiation- focus on win-lose claims made by each party concerning the desired outcome Criteria of Effective Negotiation Quality Cost Harmony Option 2 (The Right Way) Integrative Negotiation- a win-win orientation to reach solutions acceptable to each party Requires commitment, trust, and information ○ Maintain proper attitudes Hard Distribution- highly competitive, selfish Soft Distribution- one party will basically back ○ Know what you and the other party truly want ○ Ask reasonable questions ○ Remain Ethical while negotiating away and accept loss, resentment 1 4/25/2012 Ethics in Negotiation Ethics in Negotiation Relationship Value Interests of Others When negotiating with a stranger, such as when buying a car, it is expected that you may use more harsh tactics to get what you want. “Who and how will my actions affect?” Open up and be honest with whom you are negotiating. Share your dilemma and work together to find a resolution. Ethics in Negotiation Ethics Gap An ethical gap is the point at which you question what is right and wrong. A time-out during the negotiation can bring light to the situation. When you are negotiating with someone whose relationship you value, you should respect that trust and be clear about your intentions from the get-go. If you ignore these unspoken rules, you could end up losing a lot more than the negotiation. Negotiation Myths #2 Good Negotiators are born not made #3 To be a good negotiator you must be very argumentative and opinionated If you are still unsure about what road to take, consult an associate that you trust and get their thoughts on the matter. The act of taking through the decision making process in itself can often revel the answers you seek. Pawn Stars http://www.youtube.com/watch?v=EHtaek38Erg Lessons From Pawn Stars How the pawn shop works as far as negotiation. #1 You either win or lose in a business negotiation ○ This is the number one myth about negotiations. #4 Nice people end up last ○ People like to do business with people they like. Negotiation Strategy Focus on Interest, not position Communication is crucial Tips on negotiation that can be learned from the video: Understand Emotions How to use the tips effectively How to get the most out of negotiating Look for mutual gain Planning is critical 2 4/25/2012 Negotiation In Real Life Medical Debt Negotiators Union-Contract Negotiators Class Activity Collective Bargaining Arbitration/Mediation Alternative Dispute Resolution Works Cited http://pods.dasnr.okstate.edu/docushare/dsweb/Get/Docu ment-1676/F-198web.pdf Are there any Questions??? http://www.nysscpa.org/cpajournal/2004/1204/essentials/ p44.htm http://www.karrass.com/blog/5-biggest-myths-aboutnegotiation/ http://www.youtube.com/watch?v=EHtaek38Erg http://negotiationboard.com/negotiation-ethics/ Exploring Management 2nd edition…Schermerhorn…2010 3